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Waterton to Close Chaparral Gold Acquisition.

M2 EQUITYBITES-January 28, 2015-Waterton to Close Chaparral Gold Acquisition

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28 January 2015 - US-based mining company Chaparral Gold Corp. (TSX: CHL), private equity firm Waterton Precious Metals Fund II Cayman, LP and Canada-based mining company Goldrock Mines Corp. (TSX Venture: GRM) have updated their plan of arrangement transaction agreed on 8 October 2014.

Goldrock said it has assigned all of its rights and obligations under the arrangement agreement for the arrangement to Waterton Precious Metals Bid Corp., a wholly-owned subsidiary of Waterton, which will now acquire all of the issued and outstanding Chaparral shares (other than the Chaparral shares it currently owns) at the previously-agreed consideration of CDN 0.61 in cash per Chaparral share.

The parties have amended the arrangement to give effect to the foregoing, and have also waived the condition precedent to closing regarding the Junefield receivable. The deal is worth around USD 59.04m.

Chaparral said it intends to seek the approval of the Supreme Court of British Columbia for the amended Plan of Arrangement on February 5, 2015. Subject to receiving this approval and the satisfaction of customary conditions to closing, it is expected that the Arrangement will be effected on or about February 18, 2015.

The company is a Nevada-focused precious metals miner actively permitting the 100%-owned Gemfield deposit at the Goldfield property in central Nevada.

In addition to the Goldfield property, Chaparral holds a 100% interest in the Converse property, also located in Nevada.

Waterton is a mining-focused private equity firm dedicated to developing precious and base metals projects located in stable jurisdictions.

Goldrock is an emerging gold producer focused on the development of its 100% owned Lindero gold deposit located in Salta province, northwestern Argentina. Goldrock has been granted the primary mining permit by the Salta provincial government allowing it to develop the Lindero open pit, heap leach gold mine.

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Publication:M2 EquityBites (EQB)
Date:Jan 28, 2015
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